Phil Spencer says "Keystone" was cancelled because it was "more expensive than we wanted."

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Phil Spencer says "Keystone" was cancelled because it was "more expensive than we wanted."

Phil Spencer's bookshelf will likely be the only place you'll see an Xbox console-less game streaming device In an interview on The Verge's "Decoder" podcast (opens in new tab), Microsoft Gaming CEO Microsoft Gaming CEO Phil Spencer, who has been working on the Xbox gaming streaming device, codenamed Keystone, and explained why the company does not intend to roll it out anytime soon.

Spencer told the Verge that Keystone was "actually more expensive than we wanted to make with the hardware we had." While the company never officially announced the device, it shifted focus away from Keystone and made Xbox Cloud Gaming available on other devices like Samsung TVs (opens in new tab) and the Logitech G Cloud (opens in new tab) with Samsung TVs (opens in new tab) and Logitech G Cloud (opens in new tab). I had the opportunity to try Xbox Cloud Gaming (opens in new tab) via the Xbox App on my new Samsung TV a few months ago and was shocked at how well the game worked.

When asked what would be an appropriate price for the Xbox Streaming Stick, Spencer replied that "$129 or $99 would be about right."

Spencer explained that the Xbox Series S sells for $299, so the price difference between it and Keystone would need to be greater to provide value to consumers. while he did not mention why Keystone was so much more expensive, he did say, "The silicon choices we made when designing the The silicon choices we were making at the time of design did not allow us to achieve the price point we wanted.

And as for the device found on Phil's shelf in a tweet from a few months ago (opens in new tab), it turned out to be an early prototype of Keystone, and he kept it as a reminder of the team's hard work.

"It's on my shelf because the team rolled up their sleeves and built this in nine months. A lot of us took it home and it worked. It worked really, really well."

In the same interview, Phil Spencer also commented on the Starfield delay (open in new tab), saying, "The decision to give the team time to make the game they feel they should make is exactly the right one."

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